The most preferred bank transaction channel remains bank branches with 37 percent as revealed in the research conducted by Ciuci Consulting. The internet banking is second with 32 percent, indicating that deliberate actions need to be taken by banks to increase adoption of digital banking solutions.
“When analysing the frequency of use, we see a similar trend by consumers in a preference to in-person banking than online banking solutions”, Chukwuka Monye, managing partner, Ciuci Consulting, said in his presentation at the Nigeria retail banking workshop in Lagos.
According to the research report, bank branches remain the great dependency for consumer usage in Lagos with 47 percent using them daily, showing consumers are still struggling to adapt.
The report also show that mobile banking is used more frequently than internet banking, but the preference is significantly lower as only two percent of all respondents chose mobile banking as their preferred transaction channel.
It is clearly stated in the report that consumer preferences and behaviour are still lagging with the digital approach. The trend show a majority still heavily reliant on in-person banking approaches. Understanding the influencing tools to help consumers grow with the digital trend would significantly give retail banks a competitive edge in delivering a superior customer experience.
On the side of retail lending, only 15 percent of all respondents have ever applied for a loan with 81 percent stating high charges as the main reasons for not applying. The success of all retail lending is an uphill battle for banks, with a strong negative perception of retail lending offerings.
Temitope Akin-Fadeyi, head financial inclusion, Central Bank of Nigeria (CBN) disclosed that credit penetration among Nigerian adult remained very low from 2010 to 2016.
According to her, the double lending rates erode close to 25 percent of the return on capital investment by businesses in Nigeria.
She highlighted the CBN’s interest to increase flow of credit through quantitative easing, stimulating value chain and reducing financial exclusion to 20 percent in the year 2020.
Akin-Fadeyi noted that the CBN has implemented a number of programmes aimed at improving financial inclusion through regulatory perspectives, guarantees, rebels and direct funding.
Some of the programmes include microfinance banks policy framework, national financial inclusion strategy, national collateral registry, and national credit scoring system among others.
She mentioned three sectors that the CBN wants to focus on to include agriculture, manufacturing and infrastructure. “We are trying to de-risk agricultural sector”, she said.
Others who spoke at the workshop included Feyi Ogoji, director, consumer banking, UBA, Linda Quaynor, general manager, EFInA, Funwa Akinmade, group head, retail and Small and Medium Enterprises (SME) banking, Unity Bank, and Akeem Lawal, division CEO, Interswitch Nigeria.
HOPE MOSES-ASHIKE
